Ryanair has lost an European Court appeal after it was ordered to pay compensation over the Icelandic ash cloud.

Denise McDonagh from Terenure in Dublin took the action after Ryanair refused to reimburse her for food and accommodation costs accrued during the crisis in April 2010.

She was left stranded in Portugal for 7 days and ran up hotel and food bills of more than €1,049.

She argued the airline was obliged to pay her compensation for the costs of meals, refreshments, accommodation and transport she incurred between April 17th and 24th in 2010.

Court: Volcano eruption is extraordinary circumstance

The decision means that airlines across Europe will have to comply with new rules governing "extraordinary" circumstances that cause the cancellation of flights.

The airline claimed the eruption of a volcano was so extraordinary it did not meet the definition of extraordinary circumstances.

In a statement the European Court of Justice said "Circumstances such as the closure of part of European airspace as a result of a volcanic eruption such as that of the Eyjafjallajökull volcano constitute 'extraordinary circumstances' which do not release air carriers from their obligation to provide care".